U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1

29–010

" SENATE ! 108TH CONGRESS

1st Session 

REPORT

2003

108–212

Calendar No. 418

DISTRICT OF COLUMBIA BUDGET 

AUTONOMY ACT OF 2003

R E P O R T

OF THE

COMMITTEE ON GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE

TO ACCOMPANY

S. 1267

TO AMEND THE DISTRICT OF COLUMBIA HOME RULE ACT TO 

PROVIDE THE DISTRICT OF COLUMBIA WITH AUTONOMY OVER 

ITS BUDGETS, AND FOR OTHER PURPOSES

NOVEMBER 25, 2003.—Ordered to be printed 


congress.#13
(II)

COMMITTEE ON GOVERNMENTAL AFFAIRS 

SUSAN M. COLLINS, Maine, Chairman 

TED STEVENS, Alaska 

GEORGE V. VOINOVICH, Ohio 

NORM COLEMAN, Minnesota 

ARLEN SPECTER, Pennsylvania 

ROBERT F. BENNETT, Utah 

PETER G. FITZGERALD, Illinois 

JOHN E. SUNUNU, New Hampshire 

RICHARD C. SHELBY, Alabama 

JOSEPH I. LIEBERMAN, Connecticut 

CARL LEVIN, Michigan 

DANIEL K. AKAKA, Hawaii 

RICHARD J. DURBIN, Illinois 

THOMAS R. CARPER, Delaware 

MARK DAYTON, Minnesota 

FRANK LAUTENBERG, New Jersey 

MARK PRYOR, Arkansas

MICHAEL D. BOPP, Staff Director and Chief Counsel 

JOHANNA L. HARDY, Senior Counsel 

THERESA PRYCH, Professional Staff Member, Oversight of Government Management, 

the Federal Workforce and the District of Columbia Subcommittee 

JOYCE A. RECHTSCHAFFEN, Minority Staff Director and Counsel 

PATRICK J. HART, Minority Professional Staff Member 

MARIANNE CLIFFORD UPTON, Minority StaffDirector and Chief Counsel, Oversight of 

Government Management, the Federal Workforce and the District of Columbia Subcommittee 

AMY B. NEWHOUSE, Chief Clerk 

Calendar No. 418

108TH CONGRESS REPORT " SENATE ! 1st Session 108–212

DISTRICT OF COLUMBIA BUDGET AUTONOMY ACT OF 

2003

NOVEMBER 25, 2003.—Ordered to be printed 

Ms. COLLINS, from the Committee on Governmental Affairs, 

submitted the following 

R E P O R T 

[To accompany S. 1267] 

The Committee on Governmental Affairs, to whom was referred 

the bill (S. 1267) to amend the District of Columbia Home Rule Act 

to provide the District of Columbia with autonomy over its budgets, 

and for other purposes, having considered the same reports favorably thereon with an amendment and recommends that the bill do 

pass.

CONTENTS 

Page 

I. Purpose and Summary .................................................................................. 1

II. Background .................................................................................................... 2

III. Legislative History ......................................................................................... 7

IV. Section-by-Section Analysis .......................................................................... 7

V. Estimated Cost of Legislation ....................................................................... 10

VI. Evaluation of Regulatory Impact .................................................................. 11

VII. Changes in Existing Law .............................................................................. 11

I. PURPOSE AND SUMMARY

The purpose of S. 1267, the District of Columbia Budget Autonomy Act of 2003, is to amend the District of Columbia Home Rule 

Act to provide the District of Columbia with autonomy over its 

budgets, and for other purposes. 

2

1Federalist Paper No. 43. 

2 Report to the Attorney General on the Question of Statehood for the District of Columbia, 

Office of Legal Policy, U.S. Department of Justice, April 3, 1987, p. 10. 3 81 Stat. 948, as amended Pub. L. 90–623, §7(b), Oct. 22, 1968, 82 Stat. 1315. 4Public Law No. 93–198 (1973). 5D.C. Code section 1–201.02(a) (2003). 6D.C. Code section 1–204.04 (2003), Section 404 of the District of Columbia Home Rule Act; 

D.C. Code section 1–204.22 (2003), Section 422 of the District of Columbia Home Rule Act. 7See D.C. Code section 1–201.02(a) (2003). 

II. BACKGROUND

EARLY HISTORY OF LOCAL GOVERNANCE IN THE DISTRICT OF

COLUMBIA

Under article I, section 8, clause 17 of the U.S. Constitution, 

Congress has responsibility over the seat of the federal government. Since the inception of the Nation and the creation of the seat 

of the federal government, Congress has delegated authority to various entities it created to govern the District of Columbia. The delegation of authority to a local governing body has been the subject 

of debate and discussion since the creation of the District. In writing about the citizens of the District of Columbia, James Madison 

highlighted in the Federalist Papers, ‘‘* * * a municipal legislature 

for local purposes, derived from their own suffrages, will of course 

be allowed to them * * *’’ 1

Indeed, during much of the 1800s, the governance structure in 

the District was altered various times, beginning in 1801 with a 

Presidentially-appointed mayor and elected city council to the creation of a presidentially-appointed governor and 11-member Council, and an elected 22-member House of Delegates in 1871. 

Following problems of financial mismanagement, in 1874, without debate, Congress abolished the then-existing local governance 

structure and replaced it with a three-member Board of Commissioners. This began a 94-year period in which the District had no 

elected representatives in the local government.2 In 1967, under 

the District of Columbia Reorganization Plan No. 3, Congress replaced the three commissioners with a Mayor and a nine-member 

council, all of whom were presidentially-appointed.3

The current local governance structure was created when home 

rule was granted to the District in 1973 with the passage of the 

District of Columbia Self-Government and Governmental Reorganization Act (commonly referred to as the Home Rule Act).4 The 

purpose of the Home Rule Act was to ‘‘grant to the inhabitants of 

the District of Columbia powers of local self-government; modernize, reorganize, and otherwise improve the governmental structure of the District of Columbia; and, to the greatest extent possible, consistent with the constitutional mandate, relieve Congress 

of the burden of legislating upon essentially local District matters.’’ 5 The Home Rule Act, among other things, provided for an 

elected Mayor and an elected city council. The Home Rule Act delegated authority to the Council to ‘‘create, abolish, or organize any 

office, agency, department, or instrumentality of the government of 

the District and to define the powers, duties, and responsibilities 

of any such office, agency, department, or instrumentality’’ and it 

granted the Mayor authority to execute the laws of the District.6

But while Congress granted the District home rule, it still retained its ultimate legislative authority over the District,7 retained 

3

8See for example, D.C. Code section 1–204.31 (2003) (relating to Judicial powers) and D.C. 

Code section 1–206.02 (2003) (relating to limitations on the Council). 9See D.C. Code section 1–206.02(c) (2003) (relating to the congressional review period prior 

to local legislation going into effect). 10The Senate version of the Home Rule Act did provide for a local budget approval process; 

however, the final version of the Act did not contain those provisions. There is no clear legislative history that explains why the local budget process provisions were not included in the final 

bill. 11 House Report No. 104–96, p. 5. 12Public Law No. 104–8. 13 House Report No. 104–96, p. 5. 14 Ibid. 15 Ibid at 17–18. 16 Ibid at 19–33. 17Title XI of the Balanced Budget Act of 1997, Public Law No. 105–33. 18Public Law No. 106–1. 

exclusive authority over certain District functions,8 and set limitations on the local government’s exercise of its authority.9 Among 

the authorities Congress retained was the power to enact the budget for the District of Columbia.10

FINANCIAL CRISIS AND THE CONTROL PERIOD

In 1995, the District was insolvent.11 Congress reacted by enacting the District of Columbia Financial Responsibility and Management Assistance Act of 1995.12 That Act created a five member financial control authority (Control Board), appointed by the President. The Act also strengthened the responsibilities of the D.C. Inspector General, created a five-year financial plan for the District, 

and created the position of Chief Financial Officer of the District 

of Columbia. 

When the 1995 Act was passed, the city was spending at a rate 

that would exceed its fiscal year 1995 expenditure limits by $600 

million.13 The unpaid debts, which were accumulating, threatened 

city services provided by contractors.14 Congress considered various 

solutions 15 and examined financial control boards that had been 

created by State legislatures to assist in the financial recovery of 

large cities, including Cleveland, New York City, and Philadelphia.16

In 1997, Congress passed the National Capital Revitalization and 

Self-Government Improvement Act, which expanded the oversight 

responsibilities of the Control Board.17 The Control Board assumed 

administrative responsibility over nine major District agencies, including Administrative Services, Consumer and Regulatory Affairs, 

Corrections, Employment Services, Fire and Emergency Medical 

Services, Housing and Community Development, Human Services, 

Public Works, and Public Health. 

FINANCIAL RECOVERY

Following the measures taken by Congress, the District’s management of its finances improved. Because of progress the District 

had made in its financial recovery, in 1999, the District of Columbia Management Restoration Act was passed. This Act restored the 

Mayor’s authority over the city’s nine largest departments.18 Then, 

in 2001, after four consecutive balanced budgets, the Control Board 

disbanded. Since that time, the District has continued to post balanced budgets. The District has improved its finances by moving 

from deficits to surpluses. At the same time, the District has moved 

from a BBB bond rating to a rating of A¥. 

4

19Testimony of Natwar M. Gandhi, Chief Financial Officer, Government of the District of Columbia, Before the Subcommittee on Public Interest, Council of the District of Columbia, September 22, 2003, p. 2. 20 Ibid at 4. 21Fiscal Year 2004 Budget of the U.S. Government, p. 298. 

To ensure continued fiscal responsibility, the District of Columbia Financial Responsibility and Management Assistance Act of 

1995 provides for the reinstatement of the Control Board should 

the District encounter future financial problems. The creation of a 

strong, independent CFO through that Act has also assisted in ensuring appropriate financial management. 

THE NEED FOR LEGISLATION

The District of Columbia Budget Autonomy Act would assist the 

District in improving its management of its finances, agencies, and 

services. S. 1267 would provide the District with autonomy over the 

local portion of the city’s budget. Providing the District of Columbia 

with more autonomy over its local budget would help the Mayor 

and the Council of the District of Columbia better manage and run 

the city. Currently, the District of Columbia must submit its budget through the normal Federal appropriations process. Unfortunately, this process often extends past the start of the fiscal year. 

For example, the average delay for enactment of an appropriations 

bill for the District of Columbia has been three months past the 

start of the fiscal year. At times, the delay has been longer. 

For a local community these delays affect programs, planning 

and management initiatives important to the everyday lives of the 

residents of the city. Last year’s delay affected planned improvements in foster care, public schools and improved compensation for 

police and firefighters. In addition, the delays, due to the uncertainty of the federal appropriations process, are taken into account 

by bond rating agencies.19

Further, budget autonomy would allow the District to respond 

quickly to changing program and financial needs.20 Unlike other 

budgets that are approved by Congress, the District budget directly 

effects the day-to-day lives of the residents of the city—everything 

from trash collection to social services to law enforcement—creating 

a unique problem for the District that no other city in the Nation 

has to face. 

In addition, while Congress approves the local budget, Congress 

has very rarely changed items contained in the local portion of the 

budget. Notwithstanding, S. 1267 would allow a 30 calendar day 

review by Congress, and Congress would retain its authority to act 

should it object to any portion of the local budget. Federal funding 

for the District would continue to go through the normal federal 

appropriations process. 

In February 2003, President Bush endorsed budget autonomy for 

the District in the FY2004 President’s budget proposal. In the 

budget proposal, the President notes that the budget autonomy 

proposal ‘‘reflects the dramatic improvement in the District’s ability 

to manage its budget processes in the post-Control Board era.’’ 21

THE CHIEF FINANCIAL OFFICER OF THE DISTRICT OF COLUMBIA

During the Committee Business Meeting at which S. 1267 was 

considered, Chairman Susan Collins and Senator Ted Stevens ofVerDate jul 14 2003 01:00 Dec 03, 2003 Jkt 029010 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\SR212.XXX SR212
5

22Public Law No. 107–20. 23 A ‘‘non-control year’’ is a year in which the Control Board is not in operation. 24D.C. Bill No. 14–254, D.C. Act 14–89 (2001). 25Public Law No. 108–11. 

fered, and the Committee adopted, the District of Columbia Independence of the Chief Financial Officer Act of 2003 as an amendment to S. 1267. Since its creation in 1995, the District’s CFO has 

operated under authority provided to it in the District of Columbia 

Financial Responsibility and Management Assistance Act as well 

as authority delegated to it by the Control Board. In 2000, after the 

Control Board was phased out, section 155 of the District of Columbia Appropriations Act for FY2001 made permanent the responsibilities of the CFO.22 However, section 155 did not include all the 

authorities the Control Board had vested in the CFO, and some of 

the omitted authorities were necessary to carry out the office’s responsibilities to maintain financial management of the city. 

In June of 2001, then-Chairman of the Appropriations Subcommittee on District of Columbia, Senator Mary Landrieu, proposed to include an extension of the CFO’s personnel and procurement authorities in a supplemental appropriations bill. Because of 

concerns raised at that time about those authorities, the Senatepassed FY 2001 Supplemental Appropriations bill instead requested a report from the Mayor on the transition of the CFO’s responsibilities under the Act to a non-control year.23 In July of that 

year, the D.C. Council passed and the Mayor signed the Independence of the Chief Financial Officer Act of 2001.24 This bill created 

a permanent CFO in local law and allowed for independent procurement and personnel authority for a two year period before reverting to the laws that govern other D.C. agencies. However, because the law creating the CFO is contained in a section of the 

Home Rule Act, unamendable by the Council, the local law can not 

take effect until Congress acts. 

In the Fiscal Year 2002 District of Columbia Appropriations Act, 

Congress extended the CFO’s independent personnel and procurement authorities until July 1, 2002. In April of 2002, Senator 

Landrieu introduced S. 2316, the District of Columbia Fiscal Integrity Act which would have provided D.C. with budget autonomy 

and strengthened the CFO. On April 8, 2002, a D.C. Superior 

Court decision, District of Columbia Government et al. v. District 

of Columbia Public Employee Relations Board, held that the CFO’s 

authorities, as derived from the Control Board did not exempt the 

CFO from collective bargaining agreements. The decision also 

found that the CFO must rescind all personnel actions taken with 

respect to CFO employees made from April 1996 to the present, at 

a cost of upwards of $10 million. 

In response, Congress, in the FY 2003 Emergency Wartime Supplemental Appropriations Act,25 extended the personnel and procurement authorities of the CFO through September 30, 2004. The 

intention of the extension was not only to make it clear that the 

CFO’s authority was maintained, but provide the authorizing committees time to act on permanent legislation. The effect of the extension of authority delayed the enforcement of the Court decision. 

6

26 A resolution of disapproval is part of the process by which Congress would formally disapprove of an action taken by the Council. When local authorization bills are passed by the 

Council and signed by the Mayor, they are sent to Congress for a review period. If Congress 

does not act by the end of the review period, the bill becomes law. If Congress wanted to disapprove of local legislation, it would pass a resolution of disapproval. This action has been rarely 

taken. 

LOCAL RESPONSE TO PROPOSED CFO LANGUAGE

While the District has advocated for and supports strengthening 

the CFO, as evidenced by its passage of the local CFO law, District 

officials did express some concern regarding the section that would 

keep the CFO in the District charter, and, therefore, beyond the 

reach of the D.C. Council to enact changes without affirmative congressional action. The Committee understands that, generally, in 

keeping with the spirit of home rule principles, Congress ought to 

regularly examine the language in the charter. The District has asserted that Congress originally placed the CFO in the charter only 

as an emergency matter and argues that now that the District has 

posted seven years of balanced budgets with surpluses, maintains 

a cash reserve of $285 million (which equals seven percent of the 

District’s FY04 annual budget), and enjoys a bond rating of A¥, 

the emergency CFO provisions are no longer necessary. District officials also point out that the other District official recognized by 

the Control Board Act, the D.C. Inspector General, is not in the 

charter, but in District law, amendable by the D.C. Council. The 

District also asserts that retaining the CFO in the charter may unnecessarily insulate the CFO from accountability to District officials. 

District officials have suggested that, instead of retaining the 

CFO in the charter, federal law could provide for special notice to 

Congress of any proposed changes to the law affecting the CFO, 

above and beyond existing notification requirements for other local 

bills. The Committee believes that, while this is an option worth 

examining at some point, the suggested approach may produce unwanted consequences. The Committee believes that such special notification could unintentionally encourage the use of resolutions of 

disapproval,26 a practice that has been a rare occurrence. 

However, the Committee believes that at a time when Congress 

may take a major step towards localizing the D.C. budget process, 

which would strengthen home rule for the District, it is important 

to maintain the status quo and retain the CFO in the District’s 

charter. However, the Committee’s action should not be construed 

as discouraging the reconsideration of this issue at some point in 

the future. 

The Committee recognizes the significance of the District’s passage of its own CFO bill, which, if approved by Congress, would 

have moved the office of the CFO into District law. Indeed, the 

overwhelming majority of the CFO language contained in S.1267 is 

identical to the locally passed language. For example, the Committee has adopted an important addition from the District’s CFO 

bill by including a five-year term for the CFO. The CFO would continue to be appointed by the Mayor and confirmed by the D.C. 

Council. Further, while the language approved by the Committee 

has differing procurement and personnel language, it is the Committee’s understanding that District officials support the Committee’s approach taken in these areas; namely, holding the CFO to 

7

existing District procurement rules (although the CFO will have its 

own procurement office), and preserving collective bargaining 

rights of CFO employees. 

Another area of difference between the CFO language adopted by 

the Committee and the locally-passed version relates to the Lottery 

and Charitable Games Control Board (the Lottery Board). The 

Committee’s CFO language retains the status quo by keeping the 

Lottery Board within the CFO’s office. While the locally-passed 

version initially does the same, it would have eventually moved the 

Lottery Board out of the CFO’s office. Notwithstanding the fact 

that the Committee’s language would keep the Lottery Board in 

the CFO’s office, the Committee does not intend to change the status quo and believes that the District and the D.C. Council will retain their authority to enact local legislation affecting the mission 

and functions of the Lottery Board consistent with the underlying 

law establishing the Lottery Board (Title 3, Chapter 13 of the D.C. 

Code). This interpretation is consistent with the CFO’s current personnel, procurement and related operational authority over the 

Lottery Board. 

As mentioned previously, the Committee would recommend that, 

at least every two years, the authorizing committees review the 

CFO provisions. It is the understanding of the Committee that District officials desire the opportunity to present testimony regarding 

their experience after the CFO law is enacted and after they have 

some time to evaluate the impact of the legislation. 

III. LEGISLATIVE HISTORY

S. 1267 was introduced on June 16, 2003 by Senators Collins, 

Lieberman, Stevens, Voinovich, Durbin, DeWine and Landrieu and 

referred to the Committee on Governmental Affairs. On June 20, 

2003 the bill was referred to the Subcommittee on Government 

Management, the Workforce, and the District of Columbia. The bill 

was polled out of subcommittee on October 15, 2003. On October 

22, 2003, the Committee considered S. 1267. An amendment was 

offered by Senators Collins and Stevens. The amendment was 

agreed to and, by voice vote, the Committee ordered the bill, as 

amended, reported. 

IV. SECTION-BY-SECTION ANALYSIS

Section 1 entitles the bill as the District of Columbia Budget Autonomy Act of 2003. 

Section 2(a) re-writes section 446 of the Home Rule Act (the section that describes how the District’s budget gets enacted), to draw 

a distinction between budgets submitted during a control year and 

those submitted in a non-control year. 

Section 2(b) updates section 602(c) of the Home Rule Act (the section that describes the congressional review process for local legislation) to read that, for budget related matters that fall under section 446, the 30-calendar-day period of congressional review applies. If the 30-day review period ends during a recess, Congress 

will have five additional days following recess to act. This section 

also applies the existing expedited review procedures in the Home 

Rule Act to resolutions of disapproval introduced in Congress to 

8

disapprove of the budget. This 30-calendar-day congressional review period for the budget only applies during non-control years. 

Section 2(c) makes technical corrections to the Home Rule Act, 

the Financial Responsibility and Management Assistance Act and 

the National Capital Revitalization and Self-Government Improvement Act to reflect the changes made to section 446 of the Home 

Rule Act. 

Section 3(a) updates section 404(f) of the Home Rule Act (the section that explains how the Council can override mayoral vetoes, 

and for other purposes), to reflect that budgets will no longer be 

submitted by the President to the Congress (except during control 

years). 

Section 3(b) makes technical changes to section 404(f) of the 

Home Rule Act to reflect the changes made in the previous subsection. 

Section 4 updates section 447 of the Home Rule Act (the section 

that iterates that no employee can be hired without appropriate 

funding approved in the budget) to reflect that budgets will no 

longer be approved by Congress. 

Section 5(a) updates section 603(a) of the Home Rule Act (stating 

that nothing in Home Rule changes the DC-federal relationship) to 

clarify that this legislation does change the local-federal relationship as it pertains to federal approval of the local budget. 

Section 5(b) re-writes section 603(d) (essentially combining existing 603(d) and 603(f)) of the Home Rule Act to make it clear that, 

during a control year, the Council may not approve, and the Mayor 

may not submit, a budget that is inconsistent with the financial 

plan and budget established by the Control Board. 

Section 5(c) inserts the definition of ‘‘control year’’ into the Home 

Rule Act. 

Section 6(a) continues the application of any general provisions 

(e.g. social riders) contained in the federal appropriations bill in effect at the time of passage on this Act until the subsequent appropriations bill is enacted. 

Section 6(b) authorizes the imposition of restrictions on the use 

of local funds through the federal appropriations process, notwithstanding local passage of the local portion of the budget. 

Section 7 states that this legislation will take effect October 1, 

2004, meaning that the FY05 budget would not require congressional approval. 

Section 201 entitles Title II as the District of Columbia Independence of the Chief Financial Officer Act of 2003. 

Section 202 amends section 424 of the Home Rule Act to replace 

the existing section with a new section as follows: 

(a)(1) ESTABLISHMENT.—Establishes within the executive branch 

of the D.C. government, an Office of the Chief Financial Officer 

headed by the CFO. 

(2) Changes the names of the following offices: Office of Budget 

and Management to the Office of Budget and Planning; The Department of Finance and Revenue to the Office of Tax and Revenue; the Office of Treasurer to the Office of Finance and Treasury; 

and consolidates the Office of the Controller and the Office of Information Services into the Office of Financial Operations and Systems. 

9

(3) Transfers to the CFO the functions and personnel of the Office of Budget and Planning, the Office of Tax and Revenue, the Office of Research and Analysis, the Office of Financial Operations 

and Systems, the Office of Finance and Treasury, and the Lottery 

and Charitable Games Control Board. 

(4) Indicates that the heads of these offices shall serve at the 

pleasure of the CFO. 

(5) Indicates that the CFO shall appoint and may remove the 

heads of these offices after consultation with the Mayor and Council. 

(6) Requires that the CFO prepare and annually submit to the 

Mayor annual estimates of expenditures and appropriations necessary for the operation of the Office of the CFO and all other D.C. 

accounting, budget, and financial management personnel, including 

personnel of executive branch independent agencies that report to 

the CFO. 

(b) APPOINTMENT OF THE CHIEF FINANCIAL OFFICER.— (1) The CFO will be appointed by the Mayor with the advice 

and consent of the Council. 

(2) The first CFO appointed under the Act shall begin upon 

the effective date of the Act and the initial term shall end on 

June 30, 2007. All appointments after that date will be for a 

5-year term, except for appointments made for unexpired 

terms. Any CFO may continue to serve beyond his term until 

a successor takes office. Vacancies will be filled in the same 

manner as the original appointment. Sets CFO pay at Level I 

of the Executive Schedule. 

(c) REMOVAL OF THE CFO.—The CFO may only be removed for 

cause by the Mayor. 

(d) DUTIES OF THE CFO.—Sets out the duties of the CFO including preparing the financial plan and budget for use by the Mayor; 

preparing the budgets of the District of Columbia for use by the 

Mayor; implementing procedures and programs, systems, and personnel policies within the CFO’s authority; preparing annual estimates and quarterly re-estimates; supervising financial transactions; maintaining systems of accounting and internal control; 

submitting to the Council a financial statement; supervising the assessment of all property subject to assessments; supervising the 

levying and collections of taxes, special assessments, licensing fees 

and other revenues; maintaining custody of all public funds; maintaining custody of investment and invested funds; apportioning 

total of all appropriations and funds made available during the 

year; certifying all contracts and leases; prescribing the forms of receipts, vouchers and bills to be used by agencies; certifying and approving prior to payment all bills, invoices, payrolls, and other evidences of claims; coordinating with the Inspector General to perform internal audits of accounts and operations; exercising responsibility for the administration and supervision of the D.C. Treasurer; supervising and administering all borrowing programs secured by D.C.; administering the cash management program; administering the centralized payroll and retirement systems; governing the accounting policies and systems; preparing annual, 

quarterly, and monthly financial reports; preparing the complete financial statement and report on the activities of the government; 

preparing financial impact statement on regulations, multiyear 

10

contracts, and contracts over $1M; preparing under the Mayor’s directions, the budget for submission by the Mayor to the Council; 

certifying all collective bargaining agreements and nonunion pay 

proposals. 

(e) APPOINTMENT OF CERTAIN EXECUTIVE BRANCH AGENCY

CFOS.—All CFOs of all D.C. executive branch subordinate and 

independent agencies and associate CFOs shall be appointed by the 

CFO, in consultation with the agency head. 

(f) FUNCTIONS OF THE TREASURER.—Restates functions of Treasurer as outlined in current law. 

(g) TRANSITION PROVISIONS.—

(1) Any CFO appointed by the Mayor prior to the enactment 

of the Act may continue to serve until a new CFO is appointed. 

(2) Any agency CFO appointed prior to the Act may continue 

to serve without reappointment. 

Section 203 clarifies the CFO duties as they relate to the Mayor’s 

responsibilities. 

Section 204 amends the Home Rule Act to provide for a new section covering the CFO personnel authority. The new section indicates that, except as contained in any collective bargaining agreement entered into by the CFO, employees of the CFO shall serve 

at the pleasure of the CFO and are at-will employees. This section 

also provides the CFO with independent authority over legal personnel. 

Section 205 amends the Home Rule Act to create a new section 

related to the CFO’s procurement authority. This section also requires the CFO to follow local procurement laws, but authorized 

the CFO to maintain a separate procurement office. 

Section 206 requires all permanent bills and resolutions of the 

Council be accompanied by fiscal impact statements. 

V. ESTIMATED COST OF LEGISLATION

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, October 29, 2003. 

Hon. SUSAN M. COLLINS, Chairman, Committee on Governmental Affairs, 

U.S. Senate, Washington, DC. 

DEAR MADAM CHAIRMAN: The Congressional Budget Office has 

prepared the enclosed cost estimate for S. 1267, the District of Columbia Budget Autonomy Act of 2003. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

DOUGLAS HOLTZ-EAKIN, 

Director. 

Enclosure. 

S. 1267—District of Columbia Budget Autonomy Act of 2003

S. 1267 would allow the District of Columbia to enact the portion 

of its annual budget that is locally funded. Under current law, the 

District of Columbia cannot spend any local or federal funds until 

its annual appropriation from the federal government has been enVerDate jul 14 2003 01:00 Dec 03, 2003 Jkt 029010 PO 00000 Frm 00012 Fmt 6659 Sfmt 6602 E:\HR\OC\SR212.XXX SR212
11

acted. CBO estimates that enacting S. 1267 would have no impact 

on the federal budget. 

S. 1267 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on the District of Columbia. 

The CBO staff contact is Matthew Pickford. This estimate was 

approved by Peter H. Fontaine, Deputy Assistant Director for 

Budget Analysis.

VI. EVALUATION OF REGULATORY IMPACT

Pursuant to the requirements of paragraph 11(b) of rule XXVI of 

the Standing Rules of the Senate, the Committee has considered 

the regulatory impact of this bill. The Congressional Budget Office 

states that there are no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and no 

costs on state, local, or tribal governments. The legislation contains 

no other regulatory impact. 

VII. CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

reported, are shown as follows (existing law proposed to be omitted 

is enclosed in black brackets, new matter is printed in italic and 

existing law, in which no change is proposed, is shown in roman): 

DISTRICT OF COLUMBIA CODE 

TITLE 1—GOVERNMENT ORGANIZATION 

CHAPTER 2—DISTRICT OF COLUMBIA HOME RULE 

Subchapter IV—The District Charter 

ø§ 1–204.46. Enactment of appropriations by Congress 

øThe Council, within 50 calendar days after receipt of the budget 

proposal from the Mayor, and after public hearing, shall by act 

adopt the annual budget for the District of Columbia government. 

Any supplements thereto shall also be adopted by act by the Council after public hearing. Such budget so adopted shall be submitted 

by the Mayor to the President for transmission by him to the Congress. Except as provided in §§ 1–204.45a(b), 1–204.67(d), 1–

204.71(c), 1–204.72(d)(2), 1–204.75(e)(2), 1–204.83(d), and 1–

204.90(f), (g), (h)(3), and (i)(3), no amount may be obligated or expended by any officer or employee of the District of Columbia government unless such amount has been approved by Act of Congress, and then only according to such Act. Notwithstanding any 

other provision of this chapter, the Mayor shall not transmit any 

annual budget or amendments or supplements thereto, to the 

President of the United States until the completion of the budget 

procedures contained in this chapter. After the adoption of the annual budget for a fiscal year (beginning with the annual budget for 

fiscal year 1995), no reprogramming of amounts in the budget may 

occur unless the Mayor submits to the Council a request for such 

reprogramming and the Council approves the request, but only if 

12

any additional expenditures provided under such request for an activity are offset by reductions in expenditures for another activity.¿

ENACTMENT OF LOCAL BUDGET

SEC. 446. (a) ADOPTION OF BUDGETS AND SUPPLEMENTS.—The 

Council, within 50 calendar days after receipt of the budget proposal from the Mayor, and after public hearing, shall by Act adopt 

the annual budget for the District of Columbia government. Any 

supplements thereto shall also be adopted by Act by the Council 

after public hearing. 

(b) TRANSMISSION TO PRESIDENT DURING CONTROL YEARS.—In 

the case of a budget for a fiscal year which is a control year, the 

budget so adopted shall be submitted by the Mayor to the President 

for transmission by him to the Congress, except that the Mayor shall 

not transmit any such budget, or amendments or supplements thereto, to the President until the completion of the budget procedures 

contained in this Act and the District of Columbia Financial Responsibility and Management Assistance Act of 1995. 

(c) PROHIBITING OBLIGATIONS AND EXPENDITURES NOT AUTHORIZED UNDER BUDGET.—Except as provided in section 445A(b), section 467(d), section 471(c), section 472(d), section 475(e), section 

483(d), and subsections (f), (g), (h)(3), and (i)(3) of section 490, no 

amount may be obligated or expended by any officer or employee of 

the District of Columbia government unless—

(1) such amount has been approved by an Act of the Council 

(and then only in accordance with such authorization) and a 

copy of such Act has been transmitted by the Chairman to the 

Congress; or 

(2) in the case of an amount obligated or expended during a 

control year, such amount has been approved by an Act of Congress (and then only in accordance with such authorization).

(d) RESTRICTIONS ON REPROGRAMMING OF AMOUNTS.—After the 

adoption of the annual budget for a fiscal year (beginning with the 

annual budget for fiscal year 1995), no reprogramming of amounts 

in the budget may occur unless the Mayor submits to the Council 

a request for such reprogramming and the Council approves the request, but only if any additional expenditures provided under such 

request for an activity are offset by reductions in expenditures for 

another activity. 

(e) DEFINITION.—In this part, the term ‘‘control year’’ has the 

meaning given such term in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 

1995.

* * * * * * *

13

DISTRICT OF COLUMBIA CODE 

TITLE 1—GOVERNMENT ORGANIZATION 

CHAPTER 2—DISTRICT OF COLUMBIA HOME RULE 

Subchapter VI—The District Charter 

§ 1–204.04. Powers of the Council 

* * * * * * *

ø(f)¿ (f)(1) In the case of any budget act adopted by the Council 

pursuant to § 1–204.46 and submitted to the Mayor in accordance 

with subsection (e) of this section, the Mayor shall have power to 

disapprove any items or provisions, or both, of such act and approve the remainder. In any case in which the Mayor so disapproves of any item or provision, he shall append to the act when 

he signs it a statement of the item or provision which he disapproves, and shall, within such 10-day period, return a copy of the 

act and statement with his objections to the Council. If, within 30 

calendar days after any such item or provision so disapproved has 

been timely returned by the Mayor to the Council, two-thirds of the 

members of the Council present and voting vote to reenact any 

such item or provision, such item or provision so reenacted shall 

be øtransmitted by the Chairman to the President of the United 

States¿ incorporated in such Act (or, in the case of an item or provision contained in a budget act for a control year, transmitted by the 

Chairman to the President). In any case in which the Mayor fails 

to timely return any such item or provision so disapproved to the 

Council, the Mayor shall be deemed to have approved such item or 

provision not returned, and such item or provision not returned 

shall be transmitted by the øChairman to the President of the 

United States¿ incorporated in such Act (or, in the case of an item 

or provision contained in a budget act for a control year, transmitted by the Chairman to the President). In the case of any budget 

act for a fiscal year which is a control year ø(as defined in § 47–

393(4)), this subsection¿ this paragraph shall apply as if the reference in the second sentence to ‘‘ten-day period’’ were a reference 

to ‘‘five-day period’’ and the reference in the third sentence to ‘‘thirty calendar days’’ were a reference to ‘‘5 calendar days.’’

(2) In this subsection, the term ‘‘control year’’ has the meaning 

given such term in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995. 

* * * * * * *

§ 1–204.12. Acts, resolutions, and requirements for quorum 

(a) The Council, to discharge the powers and duties imposed 

herein, shall pass acts and adopt resolutions, upon a vote of a majority of the members of the Council present and voting, unless otherwise provided in this chapter or by the Council. Except as provided in the last sentence of this subsection, the Council shall use 

acts for all legislative purposes. Each proposed act (other than an 

act to which §1–204.46 applies for a fiscal year which is a control 

year described in such section) shall be read twice in substantially 

the same form, with at least 13 days intervening between each 

14

reading. Upon final adoption by the Council each act shall be made 

immediately available to the public in a manner which the Council 

shall determine. If the Council determines, by a vote of two-thirds 

of the members, that emergency circumstances make it necessary 

that an act be passed after a single reading, or that it take effect 

immediately upon enactment, such act shall be effective for a period of not to exceed 90 days. Resolutions shall be used (1) to express simple determinations, decisions, or directions of the Council 

of a special or temporary character; and (2) to approve or disapprove proposed actions of a kind historically or traditionally 

transmitted by the Mayor, the Board of Elections, Public Service 

Commission, Armory Board, Board of Education, the Board of 

Trustees of the University of the District of Columbia, or the Convention Center Board of Directors to the Council pursuant to an 

act. Such resolutions must be specifically authorized by that act 

and must be designed to implement that act. 

* * * * * * *

ø§ 1–204.24a. Establishment of office 

ø(a) IN GENERAL.—There is hereby established within the executive branch of the government of the District of Columbia an Office 

of the Chief Financial Officer of the District of Columbia (hereafter 

referred to as the ‘‘Office’’), which shall be headed by the Chief Financial Officer of the District of Columbia (hereafter referred to as 

the ‘‘Chief Financial Officer’’). 

ø(b) OFFICE OF THE TREASURER.—The Office shall include the Office of the Treasurer, which shall be headed by the Treasurer of the 

District of Columbia, who shall be appointed by the Chief Financial 

Officer and subject to the Chief Financial Officer’s direction and 

control. 

ø(c) TRANSFER OF OTHER OFFICES.—Effective with the appointment of the first Chief Financial Officer under § 1–204.24b, the 

functions and personnel of the following offices are transferred to 

the Office:

ø(1) The Controller of the District of Columbia; 

ø(2) The Office of the Budget; 

ø(3) The Office of Financial Information Services; and 

ø(4) The Department of Finance and Revenue. 

ø(d) SERVICE OF HEADS OF OTHER OFFICES.— ø(1) OFFICE HEADS APPOINTED BY MAYOR.—With respect to 

the head of the Office of the Budget and the head of the Department of Finance and Revenue: 

ø(A) The Mayor shall appoint such individuals with the 

advice and consent of the Council, subject to the approval 

of the Authority during a control year; and 

ø(B) During a control year, the Authority may remove 

such individuals from office for cause, after consultation 

with the Mayor.¿

ø(2) OFFICE HEADS APPOINTED BY CHIEF FINANCIAL OFFICER.—With respect to the Controller of the District of Columbia and the head of the Office of Financial Information Services: 

ø(A) The Chief Financial Officer shall appoint such individuals subject to the approval of the Mayor; and 

15

ø(B) The Chief Financial Officer may remove such individuals from office for cause, after consultation with the 

Mayor.]

OFFICE OF THE CHIEF FINANCIAL OFFICER OF THE DISTRICT OF

COLUMBIA

SEC. 424. (a) IN GENERAL.—

(1) ESTABLISHMENT.—There is hereby established within the 

executive branch of the government of the District of Columbia 

an Office of the Chief Financial Officer of the District of Columbia (‘‘Office’’), which shall be headed by the Chief Financial Officer of the District of Columbia (‘‘Chief Financial Officer’’). 

(2) ORGANIZATIONAL ANALYSIS.—

(A) OFFICE OF BUDGET AND PLANNING.—The name of the 

Office of Budget and Management, established by Commissioner’s Order 69–96, issued March 7, 1969, is changed to 

the Office of Budget and Planning. 

(B) OFFICE OF TAX AND REVENUE.—The name of the Department of Finance and Revenue, established by Commissioner’s Order 69–96, issued March 7, 1969, is changed to 

the Office of Tax and Revenue. 

(C) OFFICE OF FINANCE AND TREASURY.—The name of the 

Office of Treasurer, established by Mayor’s Order 89–244, 

dated October 23, 1989, is changed to the Office of Finance 

and Treasury. 

(D) OFFICE OF FINANCIAL OPERATIONS AND SYSTEMS.—

The Office of the Controller, established by Mayor’s Order 

89–243, dated October 23, 1989, and the Office of Financial 

Information Services, established by Mayor’s Order 89–244, 

dated October 23, 1989, are consolidated into the Office of 

Financial Operations and Systems. 

(3) TRANSFERS.—Effective with the appointment of the first 

Chief Financial Officer under subsection (b), the functions and 

personnel of the following offices are established as subordinate 

offices within the Office of the Chief Financial Officer: 

(A) The Office of Budget and Planning, headed by the 

Deputy Chief Financial Officer for the Office of Budget and 

Planning. 

(B) The Office of Tax and Revenue, headed by the Deputy 

Chief Financial Officer for the Office of Tax and Revenue. 

(C) The Office of Research and Analysis, headed by the 

Deputy Chief Financial Officer for the Office of Research 

and Analysis. 

(D) The Office of Financial Operations and Systems, 

headed by the Deputy Chief Financial Officer for the Office 

of Financial Operations and Systems. 

(E) The Office of Finance and Treasury, headed by the 

District of Columbia Treasurer. 

(F) The Lottery and Charitable Games Control Board, established by the Law to Legalize Lotteries, Daily Numbers 

Games, and Bingo and Raffles for Charitable Purposes in 

the District of Columbia, effective March 10, 1981 (D.C. 

Law 3–172; D.C. Official Code section 3–1301 et seq.). 

16

(4) SUPERVISOR.—The heads of the offices listed in paragraph 

(3) of this section shall serve at the pleasure of the Chief Financial Officer. 

(5) APPOINTMENT AND REMOVAL OF OFFICE EMPLOYEES.—The 

Chief Financial Officer shall appoint the heads of the subordinate offices designated in paragraph (3), after consultation with 

the Mayor and the Council. The Chief Financial Officer may remove the heads of the offices designated in paragraph (3), after 

consultation with the Mayor and the Council. 

(6) ANNUAL BUDGET SUBMISSION.—The Chief Financial Officer of the District of Columbia shall prepare and annually submit to the Mayor of the District of Columbia, for inclusion in 

the annual budget of the District of Columbia government for 

a fiscal year, annual estimates of the expenditures and appropriations necessary for the year for the operation of the Office 

of the Chief Financial Officer and all other District of Columbia 

accounting, budget, and financial management personnel (including personnel of executive branch independent agencies) 

that report to the Office of the Chief Financial Officer pursuant 

to this Act.

* * * * * * * 

ø§ 1–204.24b. Appointment and dismissal

ø(a) IN GENERAL. ø(1) CONTROL YEAR.—During a control year, the Chief Financial Officer shall be appointed by the Mayor as follows: 

ø(A) Prior to the appointment of the Chief Financial Officer, the Authority may submit recommendations for the 

appointment to the Mayor. 

ø(B) In consultation with the Authority and the Council, 

the Mayor shall nominate an individual for appointment 

and notify the Council of the nomination. 

ø(C) After the expiration of the 7-day period which begins on the date the Mayor notifies the Council of the nomination under subparagraph (B) of this paragraph, the 

Mayor shall notify the Authority of the nomination. 

ø(D) The nomination shall be effective subject to approval by a majority vote of the Authority. 

ø(2) OTHER YEARS.—During a year other than a control year, 

the Chief Financial Officer shall be appointed by the Mayor 

with the advice and consent of the Council. Prior to appointment, the Authority may submit recommendations for the appointment. Upon confirmation by the Council, the name of the 

Chief Financial Officer shall be submitted to the Committees 

on Appropriations of the Senate and House of Representatives, 

the Committee on Governmental Affairs of the Senate, and the 

Committee on Government Reform of the House of Representatives for a 30-day period of review and comment before the appointment takes effect. 

ø(b) REMOVAL.— ø(1) CONTROL YEAR.—During a control year, the Chief Financial Officer may be removed for cause by the Authority or by 

the Mayor with the approval of the Authority. 

ø(2) OTHER YEARS.—During a year other than a control year, 

the Chief Financial Officer shall serve at the pleasure of the 

17

Mayor, except that the Chief Financial Officer may only be removed for cause upon dismissal by the Mayor and approval of 

that dismissal by a 2/3 vote of the Council. Upon approval of 

the dismissal by the Council, notice of the dismissal shall be 

submitted to the Committees on Appropriations of the Senate 

and House of Representatives, the Committee on Governmental Affairs of the Senate, and the Committee on Government Reform of the House of Representatives for a 30-day period of review and comment before the dismissal takes effect. 

ø(c) SALARY.—The Chief Financial Officer shall be paid at an annual rate equal to the rate of basic pay payable for level I of the 

Executive Schedule.¿

(b) APPOINTMENT OF THE CHIEF FINANCIAL OFFICER.— (1) IN GENERAL.—The Chief Financial Officer shall be appointed by the Mayor with the advice and consent, by resolution, of the Council. 

(2) TERM.— (A) IN GENERAL.—All appointments made after June 30, 

2007, shall be for a term of 5 years, except for appointments 

made for the remainder of unexpired terms. The appointments shall have an anniversary date of July 1. 

(B) TEMPORARY.—The term of office of the Chief Financial Officer first appointed pursuant to subsection (a) shall 

begin upon the date of enactment of the District of Columbia Independence of the Chief Financial Officer Act of 2003. 

The initial term shall end on June 30, 2007. 

(C) CONTINUANCE.—Any Chief Financial Officer may 

continue to serve beyond his term until a successor takes office. 

(D) VACANCIES.—Any vacancy in the Office of Chief Financial Officer shall be filled in the same manner as the 

original appointment under paragraph (1). 

(E) PAY.—The Chief Financial Officer shall be paid at an 

annual rate equal to the rate of basic pay payable for level 

I of the Executive Schedule. 

* * * * * * *

ø§1–204.24c. Functions 

øThe Chief Financial Officer shall have the following duties: 

ø(1) During a control year, preparing the financial plan and 

budget for the use of the Mayor for purposes of subpart B of 

subchapter VII of Chapter 3 of Title 47; 

ø(2) Preparing the budgets of the District of Columbia for the 

year for the use of the Mayor for purposes of §§1–204.41 to 1– 204.53 and 1–204.55 to 1–204.56e. 

ø(3) During a control year, assuring that all financial information presented by the Mayor is presented in a manner, and 

is otherwise consistent with, the requirements of the District 

of Columbia Financial Responsibility and Management Assistance Act of 1995 [Pub. L. 104–8]; 

ø(4) Implementing appropriate procedures and instituting 

such programs, systems, and personnel policies within the Officer’s authority, to ensure that budget, accounting and personnel control systems and structures are synchronized for 

budgeting and control purposes on a continuing basis; 

18

ø(5) Preparing and submitting to the Mayor and the Council, 

with the approval of the Authority during a control year: 

ø(A) Annual estimates of all revenues of the District of 

Columbia (without regard to the source of such revenues), 

including proposed revenues, which shall be binding on the 

Mayor and the Council for purposes of preparing and submitting the budget of the District government for the year 

under §§ 1–204.41 to 1–204.53 and 1–204.55 to 1–204.56e, 

except that the Mayor and the Council may prepare the 

budget based on estimates of revenues which are lower 

than those prepared by the Chief Financial Officer; and 

ø(B) Quarterly re-estimates of the revenues of the District of Columbia during the year. 

ø(6) Supervising and assuming responsibility for financial 

transactions to ensure adequate control of revenues and resources, and to ensure that appropriations are not exceeded. 

ø(7) Maintaining systems of accounting and internal control 

designed to provide— ø(A) Full disclosure of the financial impact of the activities of the District government; 

ø(B) Adequate financial information needed by the District government for management purposes; 

ø(C) Effective control over, and accountability for, all 

funds, property, and other assets of the District of Columbia; and 

ø(D) Reliable accounting results to serve as the basis for 

preparing and supporting agency budget requests and controlling the execution of the budget. 

ø(8) Submitting to the Council a financial statement of the 

District government, containing such details and at such times 

as the Council may specify; 

ø(9) Supervising and assuming responsibility for the assessment of all property subject to assessment and special assessments within the corporate limits of the District of Columbia 

for taxation, preparing tax maps, and providing such notice of 

taxes and special assessments (as may be required by law); 

ø(10) Supervising and assuming responsibility for the levying 

and collection of all taxes, special assessments, licensing fees, 

and other revenues of the District of Columbia (as may be required by law), and receiving all amounts paid to the District 

of Columbia from any source (including the Authority); 

ø(11) Maintaining custody of all public funds belonging to or 

under the control of the District government (or any department or agency of the District government), and depositing all 

amounts paid in such depositories and under such terms and 

conditions as may be designated by the Council (or by the Authority during a control year); 

ø(12) Maintaining custody of all investment and invested 

funds of the District government or in possession of the District government in a fiduciary capacity, and maintaining the 

safekeeping of all bonds and notes of the District government 

and the receipt and delivery of District government bonds and 

notes for transfer, registration, or exchange; 

ø(13) Apportioning the total of all appropriations and funds 

made available during the year for obligation so as to prevent 

19

obligation or expenditure in a manner which would result in 

a deficiency or a need for supplemental appropriations during 

the year, and (with respect to appropriations and funds available for an indefinite period and all authorizations to create 

obligations by contract in advance of appropriations) apportioning the total of such appropriations, funds, or authorizations in the most effective and economical manner; 

ø(14) Certifying all contracts (whether directly or through 

delegation) prior to execution as to the availability of funds to 

meet the obligations expected to be incurred by the District 

government under such contracts during the year; 

ø(15) Prescribing the forms of receipts, vouchers, bills, and 

claims to be used by all agencies, offices, and instrumentalities 

of the District government; 

ø(16) Certifying and approving prior to payment all bills, invoices, payrolls, and other evidences of claims, demands, or 

charges against the District government, and determining the 

regularity, legality, and correctness of such bills, invoices, payrolls, claims, demands, or charges; 

ø(17) In coordination with the Inspector General of the District of Columbia, performing internal audits of accounts and 

operations and records of the District government, including 

the examination of any accounts or records of financial transactions, giving due consideration to the effectiveness of accounting systems, internal control, and related administrative 

practices of the departments and agencies of the District government; 

ø(18) Exercising responsibility for the administration and supervision of the District of Columbia Treasurer (except that the 

Chief Financial Officer may delegate any portion of such responsibility as the Chief Financial Officer considers appropriate and consistent with efficiency); 

ø(19) Administering all borrowing programs of the District 

government for the issuance of long-term and short-term indebtedness; 

ø(20) Administering the cash management program of the 

District government, including the investment of surplus funds 

in governmental and non-governmental interest-bearing securities and accounts; 

ø(21) Administering the centralized District government payroll and retirement systems; 

ø(22) Governing the accounting policies and systems applicable to the District government; 

ø(23) Preparing appropriate annual, quarterly, and monthly 

financial reports of the accounting and financial operations of 

the District government; and

ø(24) Not later than 120 days after the end of each fiscal 

year, preparing the complete financial statement and report on 

the activities of the District government for such fiscal year, 

for the use of the Mayor under § 1–204.48(a)(4).¿

(c) REMOVAL OF THE CHIEF FINANCIAL OFFICER.—The Chief Financial Officer may only be removed for cause by the Mayor.

* * * * * * * 

20

ø§ 1–204.24d. Functions of Treasurer 

øAt all times, the Treasurer shall have the following duties: 

ø(1) Assisting the Chief Financial Officer in reporting revenues received by the District government, including submitting 

annual and quarterly reports concerning the cash position of 

the District government not later than 60 days after the last 

day of the quarter (or year) involved. Such reports shall include: 

ø(A) Comparative reports of revenue and other receipts 

by source, including tax, nontax, and Federal revenues, 

grants and reimbursements, capital program loans, and 

advances. Each source shall be broken down into specific 

components. 

ø(B) Statements of the cash flow of the District government for the preceding quarter or year, including receipts, 

disbursements, net changes in cash inclusive of the beginning balance, cash and investment, and the ending balance, inclusive of cash and investment. Such statements 

shall reflect the actual, planned, better or worse dollar 

amounts and the percentage change with respect to the 

current quarter, year-to-date, and fiscal year; 

ø(C) Quarterly cash flow forecast for the quarter or year 

involved, reflecting receipts, disbursements, net change in 

cash inclusive of the beginning balance, cash and investment, and the ending balance, inclusive of cash and investment with respect to the actual dollar amounts for the 

quarter or year, and projected dollar amounts for each of 

the 3 succeeding quarters; 

ø(D) Monthly reports reflecting a detailed summary 

analysis of all District of Columbia government investments, including, but not limited to: 

ø(i) The total of long-term and short-term investments; 

ø(ii) A detailed summary analysis of investments by 

type and amount, including purchases, sales (maturities), and interest; 

ø(iii) An analysis of investment portfolio mix by type 

and amount, including liquidity, quality/risk of each 

security, and similar information; 

ø(iv) An analysis of investment strategy, including 

near-term strategic plans and projects of investment 

activity, as well as forecasts of future investment 

strategies based on anticipated market conditions, and 

similar information; and 

ø(v) An analysis of cash utilization, including: 

ø(I) Comparisons of budgeted percentages of 

total cash to be invested with actual percentages 

of cash invested and the dollar amounts; 

ø(II) Comparisons of the next return on invested 

cash expressed in percentages (yield) with comparable market indicators and established District 

of Columbia government yield objectives; and 

ø(III) Comparisons of estimated dollar return 

against actual dollar yield; and 

21

ø(E) Monthly reports reflecting a detailed summary 

analysis of long-term and short-term borrowings inclusive 

of debt as authorized by § 1–206.03, in the current fiscal 

year and the amount of debt for each succeeding fiscal 

year not to exceed 5 years; all such reports shall reflect: 

ø(i) The amount of debt outstanding by type of instrument; 

ø(ii) The amount of authorized and unissued debt, 

including availability of short-term lines of credit, 

United States Treasury borrowings, and similar information; 

ø(iii) A maturity schedule of the debt; 

ø(iv) The rate of interest payable upon the debt; and 

ø(v) The amount of debt service requirements and 

related debt service reserves; and 

ø(2) Such other functions assigned to the Chief Financial Officer under § 1–204.24c as the Chief Financial Officer may delegate.¿

(d) DUTIES OF THE CHIEF FINANCIAL OFFICER.—The Chief Financial Officer shall have the following duties and shall take such steps 

as are necessary to perform these duties: 

(1) Preparing the financial plan and the budget for the use 

of the Mayor for purposes of subpart B of subchapter VII of 

chapter 3 of title 47 of the D.C. Code and preparing the 5-year 

financial plan based upon the adopted budget for submission 

with the District of Columbia budget by the Mayor to Congress.

(2) Preparing the budgets of the District of Columbia for the 

year for the use of the Mayor for purposes of sections 441–444, 

446, 448–452, 455 of the District of Columbia Home Rule Act, 

approved (87 Stat. 798–803; D.C. Official Code sections 1– 204.41 through 1–204.44, 1–204.46, 1–204.48 through 1–204.52, 

1–204.55), section 445a of the District of Columbia Home Rule 

Act, approved August 6, 1996 (110 Stat. 1698; D.C. Official 

Code section 1–204.45a), section 453 of the District of Columbia 

Home Rule Act, approved April 17, 1991 (105 Stat. 539; D.C. 

Official Code section 1–204.53), sections 456(a) through 456(d) 

of the District of Columbia Home Rule Act, approved October 

19, 1994 (108 Stat. 3488; D.C. Official Code sections 1–204.56a 

through 1–204.56d), and section 456(e) of the District of Columbia Home Rule Act, approved April 17, 1995 (109 Stat. 140; 

D.C. Official Code section 1–204.56e). 

(3) Implementing appropriate procedures and instituting such 

programs, systems, and personnel policies within the Officer’s 

authority, to ensure that budget, accounting, and personnel control systems and structures are synchronized for budgeting and 

control purposes on a continuing basis and to ensure that appropriations are not exceeded. 

(4) Preparing and submitting to the Mayor and the Council 

and making public—

(A) annual estimates of all revenues of the District of Columbia (without regard to the source of such revenues), including proposed revenues, which shall be binding on the 

Mayor and the Council for purposes of preparing and submitting the budget of the District government for the year 

under sections 441 through 444, 446, 448 through 452, and 

22

455 of the District of Columbia Home Rule Act, approved 

December 24, 1973 (87 Stat. 798–803; D.C. Official Code 

sections 1–204.41 through 1–204.44, 1–204.46, 1–204.48 

through 1–204.52, 1–204.55), section 445a of the District of 

Columbia Home Rule Act, approved August 6, 1996 (110 

Stat. 1698; D.C. Official Code section 1–204.45a), section 

453 of the District of Columbia Home Rule Act, approved 

April 17, 1991 (105 Stat. 539; D.C. Official Code section 1– 204.53), sections 456(a) through 456(d) of the District of 

Columbia Home Rule Act, approved October 19, 1994 (108 

Stat. 3488; D.C. Official Code sections 1–204.56a through 

1–204.56d), and section 456(e) of the District of Columbia 

Home Rule Act, approved April 17, 1995 (109 Stat. 140; 

D.C. Official Code section 1–204.56e), except that the Mayor 

and the Council may prepare the budget based on estimates 

of revenues which are lower than those prepared by the 

Chief Financial Officer; and 

(B) quarterly re-estimates of the revenues of the District 

of Columbia during the year. 

(5) Supervising and assuming responsibility for financial 

transactions to ensure adequate control of revenues and resources. 

(6) Maintaining systems of accounting and internal control 

designed to provide— (A) full disclosure of the financial impact of the activities 

of the District government; 

(B) adequate financial information needed by the District 

government for management purposes; 

(C) accounting for all funds, property, and other assets of 

the District of Columbia; and 

(D) reliable accounting results to serve as the basis for 

preparing and supporting agency budget requests and controlling the execution of the budget. 

(7) Submitting to the Council a financial statement of the 

District government, containing such details and at such times 

as the Council may specify. 

(8) Supervising and assuming responsibility for the assessment of all property subject to assessment and special assessments within the corporate limits of the District of Columbia for 

taxation, preparing tax maps, and providing such notice of 

taxes and special assessments (as may be required by law). 

(9) Supervising and assuming responsibility for the levying 

and collection of all taxes, special assessments, licensing fees, 

and other revenues of the District of Columbia (as may be required by law), and receiving all amounts paid to the District 

of Columbia from any source (including the District of Columbia Financial Responsibility and Management Assistance Authority). 

(10) Maintaining custody of all public funds belonging to or 

under the control of the District government (or any department 

or agency of the District government), and depositing all 

amounts paid in such depositories and under such terms and 

conditions as may be designated by the Council. 

(11) Maintaining custody of all investment and invested 

funds of the District government or in possession of the District 

23

government in a fiduciary capacity, and maintaining the safekeeping of all bonds and notes of the District government and 

the receipt and delivery of District government bonds and notes 

for transfer, registration, or exchange. 

(12) Apportioning the total of all appropriations and funds 

made available during the year for obligation so as to prevent 

obligation or expenditure in a manner which would result in a 

deficiency or a need for supplemental appropriations during the 

year, and (with respect to appropriations and funds available 

for an indefinite period and all authorizations to create obligations by contract in advance of appropriations) apportioning the 

total of such appropriations, funds, or authorizations in the 

most effective and economical manner. 

(13) Certifying all contracts and leases (whether directly or 

through delegation) prior to execution as to the availability of 

funds to meet the obligations expected to be incurred by the District government under such contracts and leases during the 

year. 

(14) Prescribing the forms of receipts, vouchers, bills, and 

claims to be used by all agencies, offices, and instrumentalities 

of the District government.

(15) Certifying and approving prior to payment of all bills, 

invoices, payrolls, and other evidences of claims, demands, or 

charges against the District government, and determining the 

regularity, legality, and correctness of such bills, invoices, payrolls, claims, demands, or charges. 

(16) In coordination with the Inspector General of the District 

of Columbia, performing internal audits of accounts and operations and records of the District government, including the examination of any accounts or records of financial transactions, 

giving due consideration to the effectiveness of accounting systems, internal control, and related administrative practices of 

the departments and agencies of the District government. 

(17) Exercising responsibility for the administration and supervision of the District of Columbia Treasurer (except that the 

Chief Financial Officer may delegate any portion of such responsibility as the Chief Financial Officer considers appropriate 

and consistent with efficiency). 

(18) Supervising and administering all borrowing programs 

secured by the full faith and credit of the District government 

for the issuance of long-term and short-term indebtedness. 

(19) Administering the cash management program of the District government, including the investment of surplus funds in 

governmental and non-governmental interest-bearing securities 

and accounts. 

(20) Administering the centralized District government payroll and retirement systems. 

(21) Governing the accounting policies and systems applicable 

to the District government. 

(22) Preparing appropriate annual, quarterly, and monthly 

financial reports of the accounting and financial operations of 

the District government. 

(23) Not later than 120 days after the end of each fiscal year, 

preparing the complete financial statement and report on the 

activities of the District government for such fiscal year, for the 

24

use of the Mayor under section 448(a)(4) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 

801; D.C. Official Code section 1–204.48(a)(4)). 

(24) Preparing fiscal impact statements on regulations, multiyear contracts, contracts over $1,000,000 and on legislation, as required by section 4a of the General Legislative Procedures Act of 1975. 

(25) Preparing under the direction of the Mayor, who has the 

specific responsibility for formulating budget policy using Chief 

Financial Officer technical and human resources, the budget for 

submission by the Mayor to the Council and to the public and 

upon final adoption to Congress and to public. 

(26) Certifying all collective bargaining agreements and nonunion pay proposals prior to submission to the Council for approval as to the availability of funds to meet the obligations expected to be incurred by the District government under such collective bargaining agreements and nonunion pay proposals during the year.

* * * * * * * 

ø§ 1–204.24e. Definitions 

øIn this part: 

ø(1) The term ‘‘Authority’’ means the District of Columbia Financial Responsibility and Management Assistance Authority 

established under § 47–391.01(a); 

ø(2) The term ‘‘control year’’ has the meaning given such 

term under §47–393(4); and 

ø(3) The term ‘‘District government’’ has the meaning given 

such term under § 47–393(5).¿

(e) APPOINTMENT OF CERTAIN EXECUTIVE BRANCH AGENCY CHIEF

FINANCIAL OFFICERS.—The chief financial officers of all District of 

Columbia executive branch subordinate and independent agencies 

not included in subsection a(3) and associate chief financial officers 

shall be appointed by the Chief Financial Officer, in consultation 

with the agency head, where applicable. The appointment shall be 

made from a list of qualified candidates developed by the Chief Financial Officer. 

* * * * * * * 

(f) FUNCTIONS OF TREASURER.—At all times, the Treasurer shall 

have the following duties: 

(1) Assisting the Chief Financial Officer in reporting revenues 

received by the District government, including submitting annual and quarterly reports concerning the cash position of the 

District government not later than 60 days after the last day of 

the quarter (or year) involved which shall include—

(A) comparative reports of revenue and other receipts by 

source, including tax, nontax, and Federal revenues, grants 

and reimbursements, capital program loans, and advances. 

Each source shall be broken down into specific components; 

(B) statements of the cash flow of the District government 

for the preceding quarter or year, including receipts, disbursements, net changes in cash inclusive of the beginning 

balance, cash and investment, and the ending balance, inclusive of cash and investment. Such statements shall reVerDate jul 14 2003 01:00 Dec 03, 2003 Jkt 029010 PO 00000 Frm 00026 Fmt 6659 Sfmt 6603 E:\HR\OC\SR212.XXX SR212
25

flect the actual, planned, better or worse dollar amounts 

and the percentage change with respect to the current quarter, year-to-date, and fiscal year;

(C) quarterly cash flow forecast for the quarter or year involved, reflecting receipts, disbursements, net change in 

cash inclusive of the beginning balance, cash and investment, and the ending balance, inclusive of cash and investment with respect to the actual dollar amounts for the 

quarter or year, and projected dollar amounts for each of 

the 3 succeeding quarters; 

(D) monthly reports reflecting a detailed summary analysis of all District of Columbia government investments, including—

(i) the total of long-term and short-term investments; 

(ii) a detailed summary analysis of investments by 

type and amount, including purchases, sales (maturities), and interest; 

(iii) an analysis of investment portfolio mix by type 

and amount, including liquidity, quality/risk of each 

security, and similar information; 

(iv) an analysis of investment strategy, including 

near-term strategic plans and projects of investment activity, as well as forecasts of future investment strategies based on anticipated market conditions, and similar information; and 

(v) an analysis of cash utilization, including—

(I) comparisons of budgeted percentages of total 

cash to be invested with actual percentages of cash 

invested and the dollar amounts; 

(II) comparisons of the next return on invested 

cash expressed in percentages (yield) with comparable market indicators and established District 

of Columbia government yield objectives; and 

(III) comparisons of estimated dollar return 

against actual dollar yield; and 

(E) monthly reports reflecting a detailed summary analysis of long-term and short-term borrowings inclusive of 

debt as authorized by section 1–206.03, in the current fiscal 

year and the amount of debt for each succeeding fiscal year 

not to exceed 5 years; all such reports shall reflect—

(i) the amount of debt outstanding by type of instrument; 

(ii) the amount of authorized and un-issued debt, including availability of short-term lines of credit, 

United States Treasury borrowings, and similar information; 

(iii) a maturity schedule of the debt; 

(iv) the rate of interest payable upon the debt; and 

(v) the amount of debt service requirements and related debt service reserves. 

(2) Such other functions assigned to the Chief Financial Officer under subsection (d) as the Chief Financial Officer may delegate. 

(g) TRANSITION PROVISIONS.—

26

(1) CFO.—Any Chief Financial Officer appointed by the 

Mayor prior to the date of enactment of the District of Columbia 

Independence of the Chief Financial Officer Act of 2003 may 

continue to serve in that capacity without reappointment until 

a new appointment under subsection (a) becomes effective. 

(2) EXECUTIVE BRANCH CFO.—any executive branch agency 

chief financial officer appointed prior to the date of enactment 

of the District of Columbia Independence of the Chief Financial 

Officer Act of 2003 may continue to serve in that capacity without reappointment. 

SEC. 424h. (a) IN GENERAL.—Notwithstanding any provision of 

law or regulation, employees of the Office of the Chief Financial Officer, including personnel described in subsection (b), shall be appointed by, shall serve at the pleasure of, and shall act under the 

direction and control of the Chief Financial Officer of the District 

of Columbia, and shall be considered at-will employees, except that 

the Chief Financial Officer shall comply with any collective bargaining agreement entered into by the Office of the Chief Financial 

Officer. 

(b) PERSONNEL.—The personnel described in this subsection are 

as follows: 

(1) The Office of the General Counsel within the Office of the 

Chief Financial Officer of the District of Columbia, such office 

shall include the General Counsel to the Chief Financial Officer 

and individuals hired or retained as attorneys by the Chief Financial Officer or any office under the personnel authority of 

the Office of the Chief Financial Officer, all such attorneys shall 

act under the direction and control of the General Counsel to 

the Chief Financial Officer. 

(2) Personnel of the Office not described in paragraph (1). 

(3) The heads and all personnel of the offices described in 

subsection (c) and the Chief Financial Officers of all District of 

Columbia executive branch subordinate and independent agencies, Associate chief financial officers, together with all other 

District of Columbia accounting, budget, and financial management personnel (including personnel of executive branch independent agencies). 

(c) OFFICES DESCRIBED.—The offices referred to in this subsection 

are as follows:

(1) The Office of Finance and Treasury (or any successor office). 

(2) The Office of Financial Operations and Systems (or any 

successor office). 

(3) The Office of the Budget and Planning (or any successor 

office). 

(4) The Office of Tax and Revenue (or any successor office). 

(5) The District of Columbia Lottery and Charitable Games 

Control Board. 

(d) INDEPENDENT AUTHORITY OVER LEGAL PERSONNEL.—Sections 

851 through 862 of the District of Columbia Government Comprehensive Merit Personnel Act of 1978, effective March 3, 1979 

(D.C. Law 2–260; D.C. Official Code section 1–608.51–1–608.62) 

shall not apply to attorneys employed by the Office of the Chief Financial Officer. 

27

SEC. 424i. The Office of the Chief Financial Officer’s procurement 

practices shall be governed by the provisions of chapter 3 of title 2 

of the D.C. Official Code, except that the Office of the Chief Financial Officer shall maintain a procurement office or division that 

shall operate independent of, and shall not be governed by, the Office of Contracting and Procurement, established by section 2–

301.05, or its successor office.

* * * * * * * 

§1–204.47. Consistency of budget, accounting, and personnel 

systems 

The Mayor shall implement appropriate procedures to insure 

that budget, accounting, and personnel control systems and structures are synchronized for budgeting and control purposes on a 

continuing basis. No employee shall be hired on a full-time or parttime basis unless such position is authorized by øact of Congress¿

act of the Council (or Act of Congress, in the case of a year which 

is a control year). Employees shall be assigned in accordance with 

the program, organization, and fund categories specified in the øact 

of Congress¿ act of the Council (or Act of Congress, in the case of 

a year which is a control year) authorizing such position. Hiring of 

temporary employees and temporary employee transfers among 

programs shall be consistent with applicable øacts of Congress¿

acts of the Council (or Acts of Congress, in the case of a year which 

is a control year) and reprogramming procedures to insure that 

costs are accurately associated with programs and sources of funding. 

* * * * * * * 

§ 1–204.48. Financial duties of Mayor 

(a) Subject to the limitations in ø§ 1–206.03,¿ section 603 and except to the extent provided under section 424(d), the Mayor shall 

have charge of the administration of the financial affairs of the District and to that end he shall: 

* * * * * * * 

§ 1–204.49. Accounting supervision and control 

øThe Mayor¿ Except to the extent provided under section 424(d), 

the Mayor shall: 

(1) Prescribe the forms of receipts, vouchers, bills, and claims 

to be used by all the agencies, offices, and instrumentalities of 

the District government; 

* * * * * * * 

§ 1–204.67. Authority to create security interests in District 

revenues 

* * * * * * * 

(d) OBLIGATIONS AND EXPENDITURES NOT SUBJECT TO APPROPRIATION.—øThe fourth sentence of §1–204.46¿Section 446(c) shall not 

apply to any obligation or expenditure of any District revenues to 

28

secure any general obligation bond or note under subsection (a) of 

this section. 

* * * * * * * 

DISTRICT OF COLUMBIA CODE 

TITLE 1—GOVERNMENT ORGANIZATION 

CHAPTER 2—DISTRICT OF COLUMBIA HOME RULE 

Subchapter VI—The District Charter 

§ 1–204.71. Borrowing to meet appropriations 

* * * * * * * 

(c) øThe 4th sentence of §1–204.46¿ Section 446(c) shall not 

apply to any amount obligated or expended by the District for the 

payment of the principal of, interest on, or redemption premium for 

any general obligation note issued under subsection (a) of this section. 

* * * * * * *

§ 1–204.72. Borrowing in anticipation of revenues 

* * * * * * * 

(d) EFFECTIVE DATE OF AUTHORIZATION ACTS; PAYMENTS NOT

SUBJECT TO APPROPRIATION.—

(1) EFFECTIVE DATE.—Notwithstanding § 1–206.02(c)(1), any 

act of the Council authorizing the issuance of revenue anticipation notes under subsection (a) of this section shall take effect: 

(A) if such act is enacted during a control year (as defined in § 47–393(4)), on the date of approval by the District of Columbia Financial Responsibility and Management Assistance Authority; or 

(B) if such act is enacted during any other year, on the 

date of enactment of such act. 

(2) PAYMENTS NOT SUBJECT TO APPROPRIATION.—øThe fourth 

sentence of § 1–204.46¿ Section 446(c) shall not apply to any 

amount obligated or expended by the District for the payment 

of the principal of, interest on, or redemption premium for any 

revenue anticipation note issued under subsection (a) of this 

section. 

* * * * * * * 

§ 1–204.75. Bond anticipation notes 

* * * * * * * 

(e) EFFECTIVE DATE OF AUTHORIZATION ACTS; PAYMENTS NOT

SUBJECT TO APPROPRIATION.—

(1) EFFECTIVE DATE.—Notwithstanding § 1–206.02(c)(1), any 

act of the Council authorizing the renewal of bond anticipation 

notes under subsection (c) [subsection (d)] or the issuance of 

general obligation bonds under § 1–204.61(a) to refund any 

bond anticipation notes shall take effect— (A) if such act is enacted during a control year (as defined in § 47–393(4)), on the date of approval by the DisVerDate jul 14 2003 01:00 Dec 03, 2003 Jkt 029010 PO 00000 Frm 00030 Fmt 6659 Sfmt 6602 E:\HR\OC\SR212.XXX SR212
29

trict of Columbia Financial Responsibility and Management Assistance Authority; or 

(B) if such act is enacted during any other year, on the 

date of enactment of such act. 

(2) PAYMENT NOT SUBJECT TO APPROPRIATION.—øThe fourth 

sentence of § 1–204.46¿ Section 446(c) shall not apply to any 

amount obligated or expended by the District for the payment 

of the principal of, interest on, or redemption premium for any 

bond anticipation note issued under this section. 

* * * * * * * 

§ 1–204.83. Payment of the general obligation bonds and 

notes 

* * * * * * * 

(d) øThe 4th sentence of § 1–204.46¿ Section 446(c) shall not 

apply to: 

(1) Any amount set aside in a debt service fund under § 1–

204.81(a); 

* * * * * * * 

§ 1–204.90. Revenue bonds and other obligations 

(f) øThe fourth sentence of § 1–204.46¿ Section 446(c) shall not 

apply to: 

(1) Any amount (including the amount of any accrued interest or premium) obligated or expended from the proceeds of the 

sale of any revenue bond, note, or other obligations issued 

under subsection (a)(1) of this section; 

(2) Any amount obligated or expended for the payment of the 

principal of, interest on, or any premium for any revenue bond, 

note, or other obligation issued under subsection (a)(1) of this 

section; 

(3) Any amount obligated or expended pursuant to provisions 

made to secure any revenue bond, note, or other obligations 

issued under subsection (a)(1) of this section; and 

(4) Any amount obligated or expended pursuant to commitments made in connection with the issuance of revenue bonds, 

notes, or other obligations for repair, maintenance, and capital 

improvements relating to undertakings financed through any 

revenue bond, note, or other obligation issued under subsection 

(a)(1) of this section. 

(g)(1) The Council may delegate to any housing finance agency 

established by it (whether established before or after April 12, 

1980) the authority of the Council under subsection (a) of this section to issue revenue bonds, notes, and other obligations to borrow 

money to finance or assist in the financing of undertakings in the 

area of primarily low- and moderate-income housing. The Council 

shall define for the purposes of the preceding sentence what undertakings shall constitute undertakings in the area of primarily lowand moderate-income housing. Any such housing finance agency 

may exercise authority delegated to it by the Council as described 

in the first sentence of this paragraph (whether such delegation is 

made before or after April 12, 1980) only in accordance with this 

subsection. 

30

(2) Revenue bonds, notes, and other obligations issued by a housing finance agency of the District under a delegation of authority 

described in paragraph (1) of this subsection shall be issued by resolution of the agency, and any such resolution shall not be considered to be an act of the Council. 

(3) øThe 4th sentence of § 1–204.46¿ Section 446(c) shall not 

apply to: 

(A) Any amount (including the amount of any accrued interest or premium) obligated or expended from the proceeds of the 

sale of any revenue bond, note, or other obligation issued 

under paragraph (1) of this subsection; 

(B) Any amount obligated or expended for the payment of 

the principal of, interest on, or any premium for any revenue 

bond, note, or other obligation issued under paragraph (1) of 

this subsection; and 

C) Any amount obligated or expended to secure any revenue 

bond, note, or other obligation issued under paragraph (1) of 

this subsection.

(h)(1) The Council may delegate to the District of Columbia 

Water and Sewer Authority established pursuant to § 34–2202.02 

the authority of the Council under subsection (a) of this section to 

issue revenue bonds, notes, and other obligations to borrow money 

to finance or assist in the financing or refinancing of undertakings 

in the area of utilities facilities, pollution control facilities, and 

water and sewer facilities (as defined in subsection (a)(5) of this 

section). The Authority may exercise authority delegated to it by 

the Council as described in the first sentence of this paragraph 

(whether such delegation is made before or after August 6, 1996) 

only in accordance with this subsection. 

(2) Revenue bonds, notes, and other obligations issued by the 

District of Columbia Water and Sewer Authority under a delegation of authority described in paragraph (1) of this subsection shall 

be issued by resolution of the Authority, and any such resolution 

shall not be considered to be an act of the Council. 

(3) øThe fourth sentence of § 1–204.46¿ Section 446(c) shall not 

apply to: 

(A) Any amount (including the amount of any accrued interest or premium) obligated or expended from the proceeds of the 

sale of any revenue bond, note, or other obligation issued pursuant to this subsection; 

(B) Any amount obligated or expended for the payment of 

the principal of interest on, or any premium for any revenue 

bond, note, or other obligation issued pursuant to this subsection; 

(C) Any amount obligate or expended to secure any revenue 

bond, not, or other obligation issued pursuant to this subsection; or 

(D) Any amount obligated or expended for repair, maintenance, and capita improvements to facilities financed pursuant 

to this subsection. 

(i)(1) The Council may delegate to the District of Columbia Tobacco Settlement Financing Corporation (hereafter in this subsection referred to as the ‘‘Corporation’’) established pursuant to 

subchapter III of Chapter 18 of Title 7 the authority of the Council 

under subsection (a) to issue revenue bonds, notes, and other obliVerDate jul 14 2003 01:00 Dec 03, 2003 Jkt 029010 PO 00000 Frm 00032 Fmt 6659 Sfmt 6602 E:\HR\OC\SR212.XXX SR212
31

gations which are used to borrow money to finance or assist in the 

financing or refinancing of capital projects and other undertakings 

of the District of Columbia and which are payable solely from and 

secured by payments under the Master Tobacco Settlement Agreement. The Corporation may exercise authority delegated to it by 

the Council as described in the first sentence of this paragraph 

(whether such delegation is made before or after the date of the enactment of this subsection) only in accordance with this subsection 

and the provisions of subchapter III of Chapter 18 of Title 7. 

(2) Revenue bonds, notes, and other obligations issued by the 

Corporation under a delegation of authority described in paragraph 

(1) of this subsection shall be issued by resolution of the Corporation, and any such resolution shall not be considered to be an act 

of the Council. 

(3) øThe fourth sentence of § 1–204.46¿ Section 446(c) shall not 

apply to: 

* * * * * * * 

DISTRICT OF COLUMBIA CODE 

TITLE 1—GOVERNMENT ORGANIZATION 

CHAPTER 2—DISTRICT OF COLUMBIA HOME RULE 

Subchapter VI—Reservation of Congressional Authority 

§ 1–206.02. Limitations on the Council 

* * * * * * * 

(c)(1) Except acts of the Council which are submitted to the 

President in accordance with Chapter 11 of Title 31, United States 

Code, any act which the Council determines, according to § 1– 204.12(a), should take effect immediately because of emergency circumstances, and acts proposing amendments to subchapter IV of 

this chapter and except as provided in § 1–204.62(c) and § 1–

204.72(d)(1) the Chairman of the Council shall transmit to the 

Speaker of the House of Representatives, and the President of the 

Senate, a copy of each act passed by the Council and signed by the 

Mayor, or vetoed by the Mayor and repassed by two-thirds of the 

Council present and voting, each act passed by the Council and allowed to become effective by the Mayor without his signature, and 

each initiated act and act subject to referendum which has been 

ratified by a majority of the registered qualified electors voting on 

the initiative or referendum. Except as provided in øparagraph (2)¿

paragraphs (2) and (4) of this subsection, such act shall take effect 

upon the expiration of the 30-calendar-day period (excluding Saturdays, Sundays, and holidays, and any day on which neither House 

is in session because of an adjournment sine die, a recess of more 

than 3 days, or an adjournment of more than 3 days) beginning on 

the day such act is transmitted by the Chairman to the Speaker 

of the House of Representatives and the President of the Senate, 

or upon the date prescribed by such act, whichever is later, unless 

during such 30-day period, there has been enacted into law a joint 

resolution disapproving such act. In any case in which any such 

joint resolution disapproving such an act has, within such 30-day 

32

period, passed both Houses of Congress and has been transmitted 

to the President, such resolution, upon becoming law, subsequent 

to the expiration of such 30-day period, shall be deemed to have repealed such act, as of the date such resolution becomes law. The 

provisions of § 1–206.04, except subsections (d), (e), and (f) of such 

section, shall apply with respect to any joint resolution disapproving any act pursuant to this paragraph. 

(2) In the case of any such act transmitted by the Chairman with 

respect to any act codified in Title 22, 23, or 24 of the District of 

Columbia Code, such act shall take effect at the end of the 60-day 

period beginning on the day such act is transmitted by the Chairman to the Speaker of the House of Representatives and the President of the Senate unless, during such 60-day period, there has 

been enacted into law a joint resolution disapproving such act. In 

any case in which any such joint resolution disapproving such an 

act has, within such 60-day period, passed both Houses of Congress 

and has been transmitted to the President, such resolution, upon 

becoming law subsequent to the expiration of such 60-day period 

shall be deemed to have repealed such act, as of the date such resolution becomes law. The provisions of § 1–206.04, relating to an expedited procedure for consideration of joint resolutions, shall apply 

to a joint resolution disapproving such act as specified in this paragraph. 

(3) The Council shall submit with each act transmitted under 

this subsection an estimate of the costs which will be incurred by 

the District of Columbia as a result of the enactment of the act in 

each of the first 4 fiscal years for which the act is in effect, together 

with a statement of the basis for such estimate.

(4) In the case of any Act transmitted under the first sentence of 

paragraph (1) to which section 446 applies and for which the fiscal 

year involved is not a control year, such Act shall take effect upon 

the expiration of the 30-calendar-day period beginning on the day 

such Act is transmitted, or upon the date prescribed by such Act, 

whichever is later, unless during such 30-day period, there has been 

enacted into law a joint resolution disapproving such Act. If such 

30-day period expires on any day on which neither House is in session because of an adjournment sine die, a recess of more than three 

days, or an adjournment of more than three days, the period applicable under the previous sentence shall be extended for 5 additional 

days (excluding Saturdays, Sundays, and holidays, and any day on 

which neither House is in session because of an adjournment sine 

die, a recess of more than three days, or an adjournment of more 

than three days). In any case in which any such joint resolution disapproving such an Act has, within the applicable period, passed 

both Houses of Congress and has been transmitted to the President, 

such resolution, upon becoming law, subsequent to the expiration of 

such period, shall be deemed to have repealed such Act, as of the 

date such resolution becomes law. The provisions of section 604 

shall apply with respect to any joint resolution disapproving any 

Act pursuant to this paragraph.

* * * * * * * 

33

§1–206.03. Budget process; limitations on borrowing and 

spending 

(a) Nothing in this chapter shall be construed as making any 

change in existing law, regulation, or basic procedure and practice 

relating to the respective roles of the Congress, the President, the 

Federal Office of Management and Budget, and the Comptroller 

General of the United States in the preparation, review, submission, examination, authorization, and appropriation of the total 

budget of the District of Columbia government for a fiscal year 

which is a control year.

* * * * * * * 

ø(d) Except as provided in subsection (f) of this section, the 

Mayor shall not forward to the President for submission to Congress a budget which is not balanced according to the provision of 

subsection (c) of this section.¿ (d) In the case of a fiscal year which 

is a control year, the Council may not approve, and the Mayor may 

not forward to the President, any budget which is not consistent 

with the financial plan and budget established for the fiscal year 

under subtitle A of title II of the District of Columbia Financial Responsibility and Management Assistance Act of 1995.

* * * * * * * 

ø(f) In the case of a fiscal year which is a control year (as defined 

in §47–393(4)), the Council may not approve, and the Mayor may 

not forward to the President, any budget which is not consistent 

with the financial plan and budget established for the fiscal year 

under part B of subchapter VII of chapter 3 of Title 47.¿ (f) In this 

section, the term ‘‘control year’’ has the meaning given such term in 

section 305(4) of the District of Columbia Financial Responsibility 

and Management Assistance Act of 1995.

* * * * * * * 

CHAPTER 3—SPECIFIED GOVERNMENTAL AUTHORITY 

Subchapter I—Additional Governmental Powers and 

Responsibilities 

§ 1–301.47. Definition of terms set forth in acts and resolutions [Formerly § 1–232] 

For the purposes of any act or resolution of the Council of the 

District of Columbia, unless specifically provided otherwise: 

(1) The term ‘‘Council’’ means the Council of the District of 

Columbia established under § 1–204.01. 

(2) The term ‘‘Mayor’’ means the Mayor of the District of Columbia established under § 1–204.21. 

(3) The term ‘‘Act’’ means an Act of the Congress. 

(4) The term ‘‘act’’ means an act of the Council. 

§ 1–301.47a. * * *

(a) BILLS AND RESOLUTIONS.—

(1) IN GENERAL.—Notwithstanding any other law, except as 

provided in subsection (c), all permanent bills and resolutions 

shall be accompanied by a fiscal impact statement before final 

adoption by the Council. 

34

(2) CONTENTS.—The fiscal impact statement shall include the 

estimate of the costs which will be incurred by the District as 

a result of the enactment of the measure in the current and 

each of the first four fiscal years for which the act or resolution 

is in effect, together with a statement of the basis for such estimate. 

(b) APPROPRIATIONS.—Permanent and emergency acts which 

are accompanied by fiscal impact statements which reflect 

unbudgeted costs, shall be subject to appropriations prior to becoming effective. 

(c) APPLICABILITY.—Subsection (a) shall not apply to emergency declaration, ceremonial, confirmation, and sense of the 

Council resolutions.

* * * * * * * 

CHAPTER 6—MERIT PERSONNEL SYSTEM 

Subchapter VIII–B—Government Attorneys 

§ 1–608.62. Applicability 

The provisions of this subchapter shall apply on April 20, 1999, 

except as follows: 

(1) Section 1–608.52 shall include attorneys employed by the 

District of Columbia Board of Education as part of the new 

Legal Service only as long as there is no Congressional statutory requirement that attorneys employed by the District of 

Columbia public schools be classified as Educational Service 

employees. 

ø(2) The provisions of this subchapter shall apply to attorneys employed by the Office of the Chief Financial Officer 

when the District of Columbia is no longer in a control period, 

as defined in § 47–393(3).¿

* * * * * * * 

TITLE 2—GOVERNMENT ADMINISTRATION 

Chapter 3—Procurement 

§ 2–301.04. Application of chapter 

(a) Except as provided in § 2–303.20, this chapter shall apply to 

all departments, agencies, instrumentalities, and employees of the 

District government, including agencies which are subordinate to 

the Mayor, independent agencies, boards, and commissions, but excluding the Council of the District of Columbia, District of Columbia courts, the District of Columbia Financial Responsibility and 

Management Assistance Authority, and District of Columbia Advisory Neighborhood Commissions. 

(b) This chapter shall apply to any contract for procurement of 

goods and services, including construction and legal services, but 

shall not apply to a contract or agreement receiving or making 

grants-in-aid or for federal financial assistance. 

(c) The Council of the District of Columbia, the Corporation 

Counsel, Inspector General, Auditor, and Chief Financial Officer 

may contract for the services of accountants, lawyers, and other exVerDate jul 14 2003 01:00 Dec 03, 2003 Jkt 029010 PO 00000 Frm 00036 Fmt 6659 Sfmt 6602 E:\HR\OC\SR212.XXX SR212
35

perts when they determine and state in writing that good reason 

exists why such services should be procured independently of the 

CPO. øDuring a control year, as defined by §47–393(4), the Office 

of the Chief Financial Officer of the District of Columbia shall be 

exempt from the provisions of this chapter, and shall adopt, within 

30 days of April 12, 1997, the procurement rules and regulations 

adopted by the District of Columbia Financial Responsibility and 

Management Assistance Authority. During years other than control 

years, the Office of the Chief Financial Officer shall be bound by 

the provisions contained in this chapter.¿

* * * * * * * 

TITLE 24—PRISONERS AND THEIR 

TREATMENT 

CHAPTER 1—TRANSFER OF PRISON SYSTEM TO 

FEDERAL AUTHORITY 

Subchapter I—Corrections 

§ 24–106. Permitting expenditure of funds to carry out certain sewer agreement 

Notwithstanding the øfourth sentence of § 1–204.46¿ section 

446(c), the District of Columbia is authorized to obligate or expend 

such funds as may be necessary during a fiscal year (beginning 

with fiscal year 1997) to carry out the Sewage Delivery System and 

Capacity Purchase Agreement between Fairfax County and the 

District of Columbia with respect to Project Number K00301, without regard to the amount appropriated for such purpose in the 

budget of the District of Columbia for the fiscal year. 

* * * * * * * 

TITLE 47—TAXATION, LICENSING, PERMITS, 

ASSESSMENTS, AND FEES 

CHAPTER 3—BUDGET AND FINANCIAL MANAGEMENT; 

BORROWING; DEPOSIT OF FUNDS 

Subchapter VII—Financial Responsibility and Management 

Assistance 

§ 47–392.02. Process for submission and approval of financial 

plan and annual District budget 

* * * * * * * 

(c) Action upon approval of Mayor’s preliminary financial plan 

and budget. 

* * * * * * * 

(2) ADOPTION OF FINANCIAL PLAN AND BUDGET BY COUNCIL

AFTER RECEIPT OF APPROVED FINANCIAL PLAN AND BUDGET.—

Notwithstanding øthe first sentence of § 1–204.46¿ section 

446(a), not later than 30 days after receiving the financial plan 

and budget for the fiscal year from the Mayor under paragraph 

(1)(A)(ii) of this subsection, the Council shall by Act adopt a fiVerDate jul 14 2003 01:00 Dec 03, 2003 Jkt 029010 PO 00000 Frm 00037 Fmt 6659 Sfmt 6602 E:\HR\OC\SR212.XXX SR212
36

nancial plan and budget for the fiscal year which shall serve 

as the adoption of the budgets of the District government for 

the fiscal year under such section, and shall submit such financial plan and budget to the Mayor and the Authority. 

* * * * * * * 

(d) Action upon disapproval of Mayor’s preliminary financial plan 

and budget. 

* * * * * * * 

(3) ACTION BY COUNCIL. 

(A) ADOPTION OF FINANCIAL PLAN AND BUDGET.—Notwithstanding øthe first sentence of § 1–204.46¿ section 

446(a), not later than 30 days after receiving the Mayor’s 

approved revised financial plan and budget for the fiscal 

year under paragraph (2)(B) of this subsection or (in the 

case of a financial plan and budget disapproved by the Authority) the financial plan and budget recommended by the 

Authority under paragraph (2)(C)(i)(III) of this subsection, 

the Council shall by Act adopt a financial plan and budget 

for the fiscal year which shall serve as the adoption of the 

budgets of the District government for the fiscal year 

under such section, and shall submit the financial plan 

and budget to the Mayor and the Authority.

Æ